House sold sign in Paulton, near Bristol. But a poll for Countrywide estate agency found many in the 18-34 age group cannot raise a deposit. Photograph: Matt Cardy/Getty Images
The chief executive of the UK's largest estate agent has renewed calls on the government to intervene in the housing market to prevent future generations being priced out of owning a home.
Grenville Turner, the head of Countrywide, said the UK could become a country of renters after a survey commissioned by the company found that almost half of 18- to 34-year-olds said difficulty raising a deposit was the biggest barrier to buying a property.
Turner said: "We are at a crossroads for home ownership, where we could see the next generation becoming a nation of renters without the right intervention from government.
"Based on current levels of activity, the average home owner moves house once every 25 years as opposed to [historically] once every 12 years. These levels are unsustainable and we call for further support as a strong, vibrant, housing market contributes to GDP growth and will dramatically improve the economy."
His comments came as Countrywide, which has 1,300 offices in the UK, unveiled a poll on the public's attitudes to the housing market.
The survey of 6,000 people found that of those respondents not moving home, 21% said the reason was inability to afford a deposit, 16% said they could not afford mortgage repayments, and 16% said barriers included moving costs, such as stamp duty.
Only 32% of private rental tenants said they were happy where they lived. Countrywide has claimed that a recovery of the housing market is "fundamental to economic recovery". The company has called on the chancellor, George Osborne, to introduce mortgage relief for first-time buyers, to set tough mortgage lending targets for banks and introduce incentives for development projects.
While Countrywide's position has struck a chord with many, the call has followed a tough period of business for estate agents. Profits within Countrywide's estate agency business have dropped from £79m in 2006 to £26m in 2010, the last time it published results.
Other surveys suggest there are improvements in housing affordability.
Halifax, now part of the Lloyds Banking Group, said affordability has improved for public-sector workers in the past four years. According to the lender, a study of five public-sector occupations found the average worker could afford a home in 41% of the UK's towns compared with 3% of towns when house prices peaked in September 2007.
Even so, levels of affordability – which is defined as house prices being less than four times average earnings – are still low compared with 10 years ago.
The study, using figures from the Office for National Statistics, examined the average earnings of nurses, teachers, police, firefighters and paramedics, and average house prices across Britain.
Nelson, Lancashire, was named the most affordable town for public-sector workers, followed by Bootle,Merseyside, and Darwen, Lancashire.
Martin Ellis, housing economist at Halifax, said: "The greatest concentration of this improvement [in affordability] has been in northern England, Wales and Scotland. There are still considerable affordability issues for key workers in London and the south-east."
A survey by property analysts Hometrack found affordability problems were not confined to home owners. Pressure on tenants could mean rental growth staying relatively subdued, with rents rising by 2-3% in 2012, pushing gross yields slightly higher towards 5.5% by the year-end.
Richard Donnell, the director of research at Hometrack, said: "The rise in private rents has been driven by growing tenant demand and a shortage of supply. With no major improvements in mortgage availability likely in the near future rental demand is set to remain strong. There is however a limit as to how high rents can go as affordability constraints continue to squeeze household budgets."
No comments:
Post a Comment